Tidewater Inc (TDW)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	182,215	26,708	-95,016	-186,802	-86,604
Interest expense	US$ in thousands	48,472	17,189	15,583	24,156	29,068
Interest coverage		3.76	1.55	-6.10	-7.73	-2.98

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $182,215K ÷ $48,472K
= 3.76

Tidewater Inc's interest coverage ratio has shown positive trends over the past five years. As of Dec 31, 2023, the interest coverage ratio stands at 3.76, indicating the company's ability to cover its interest expenses with operating income has improved significantly compared to previous years. In Dec 31, 2022 and Dec 31, 2021, the ratios were 1.55 and -6.10, respectively, reflecting a precarious financial position where the company was struggling to cover its interest costs.

Looking back to Dec 31, 2020 and Dec 31, 2019, the interest coverage ratios were -7.73 and -2.98, respectively, indicating significant challenges in meeting interest obligations with operating income during those periods.

Overall, the upward trend in the interest coverage ratio suggests that Tidewater Inc's financial health has improved, as it is now better positioned to meet its interest payments from operating profits. This positive trajectory signals a healthier financial position and enhances the company's ability to service its debt obligations.